• Wed. Jul 17th, 2024

OKX Launches Customer Compensation Package Following the Crash of OKB

Maria Bartiromo

ByMaria Bartiromo

Jan 25, 2024

The cryptocurrency exchange OKX has unveiled a thorough user compensation plan in reaction to the recent collapse in the value of its native token, OKB. With its current value of $47.04, the OKB token has significantly dropped 13.55% in the last week. The statement follows OKB’s abrupt and significant decline on January 23, which saw its value quickly collapse by about 50%, from $52-$25.

Investors were alarmed by the recent drop in OKB’s value, which prompted the exchange to rectify the situation proactively. The goal of the compensation plan is to lessen the adverse effects of the OKB price collapse on users who could have suffered losses during this time. 

Experts Explained, Deliberate on the Cause of the Price Crash 

The company is yet to speak on communication to the affected parties. But it is anticipated that OKX subscribers will get information about the compensation scheme through official means, ensuring clarity regarding the application process and qualifying requirements.

Talks concerning the causes of the price collapse were sparked by the fall in OKB’s value, the utility token of OKX. The cryptocurrency community on the X platform is skeptical of the situation, as they are focused more on OKB’s $10 billion market capitalization. The community is more interested in the $10 million sales, contributing to its 50% price drop.

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Describing the situation, Rony Roy from Crypto. News explained that Leveraging in the cryptocurrency industry borrows funds to amplify the return on investment. Roy also warned that such a method could be a risky decision to make. OKX, on the other hand, offered its users 20X and 10X in leverage options under a complete liquidation status. 

SEC Commissioner Speaks, Recalls Her Challenges Before ETF Approval

In an interview with Zack Guzman, Hester Peirce, the SEC Commissioner, said that the SEC must not suddenly be compelled by the court to prove the existence of a cryptocurrency backed by ETFs. Police said that the commission would change the approval process for companies applying for the Ethereum ETF.

From his explanations, the SEC will make all the market and consumer decisions, as it has always done with every ETF product. Pierce spoke on the current challenge facing her. She mentioned the long delay in approving the BTC ETF, pointing out that she always thinks these products are up to standard and meet all the necessary requirements for the approval.

OKX Explains Move, Says it’s Part of Customer-centric Strategy 

The company says that users affected by the OKB price collapse will be anxious to learn more about the compensation plan’s details, such as the scope of coverage and the procedures for making compensation claims.

Pierce also mentioned that the lack of crowd promotion, which could have, in response, triggered anxious anticipation among the public, will be a significant point to consider in the ETH ETF approval process – the reason being that the SEC should not be relying on regulatory decisions for gathering the needed hype.

Roy also explained that crashes often influence the cryptocurrency market, which is usually triggered by little spread in liquidity across other platforms. With a current market depth of approximately 2%, OKT needs approximately $184,000 and $224,000 in sales volume to rebound. Meanwhile, a sales volume of over  $224,000 may trigger a possible price cascade.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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